Performance Report of Common wealth Bank of Australia

Performance Report of Commonwealth Bank of Australia
Objective & Introduction
The report has been written with an objective to analyse the financial performance and
strength of the bank in Australian Market based on historical data and other information
available in public domain.
Commonwealth Bank of Australia is listed on Australian Stock Exchange and is engaged in
providing financial services encompassing retail, business, institutional banking, funds
management, superannuation, general insurance, broking services and finance company
activities. The Bank has following segments of business:
(a) Retail Banking Services;
(b) Business and Private Banking;
(c) Institutional banking and markets;
(d) Wealth Management.
The market capitalisation of the bank as on 17-04-2020 is 108.44 Billion AUD with shares
price of 61.06 AUD. (Reuters.com, 2019)
Analysis of Financial Performance of the bank
(a) Based on Financials and Annual Report
Commonwealth Bank of Australia is one of the popular banks of Australia. The bank has a
very good last decade performance with a positive growth witnessed every year. For the
purpose of analysing the performance, the following ratios have been considered significant:
(a) Net interest Margin (NIM);
(b) Cost to income (CTI);
(c) Return on Equity (ROE);
(d) Return on Asset (ROA);
(e) Operating Income/ Total Assets(%) (OP/TA);
(f) NII/ Total Operating Income (NII/TOI);
(g) Loans/Total Assets; (L/TA)
(h) Equity to Total Assets (E/TA);
A comparison of these parameters over the period of 2010 to 2019 is presented as under:
Year NIM CTI ROE ROA OI/TA NII/T OI L/TA (%) E/TA
2010 2.12 49.12 16.91 0.92 2.96 62.38 76.35 5.50
2011 2.17 47.92 18.60 1.02 3.03 62.29 74.87 5.58
2012 2.11 48.53 17.34 0.99 2.92 62.58 73.19 5.79
2013 2.07 48.42 17.40 1.04 3.04 60.80 73.84 6.03
2014 2.07 47.77 17.96 1.11 3.14 60.77 75.53 6.24
2015 2.00 47.85 17.43 1.05 2.98 60.71 73.19 6.07
2016 2.02 46.13 15.70 1.01 2.81 64.54 74.53 6.51
2017 1.96 44.64 15.65 1.01 2.80 64.34 74.95 6.53
2018 2.04 39.67 15.23 1.05 2.58 72.99 76.23 6.96

Year NIM CTI ROE ROA OI/TA NII/T OI L/TA (%) E/TA
2019 1.98 41.59 12.93 0.92 2.37 78.32 77.33 7.13
Further, a graphical representation of above data is presented as under:
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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Graphical Comparison
Net Interest Margin (%) Cost-to-Income (%)
ROE (%) ROA (%)
Op Income/Total Assets (%) NII/Total Op Income (%)
Loans/Total Asssets (%) Equity to Total Assets (%)